Home Wikituition Browse all terms Categories
Random term

Orders, Execution & Market Structure

60 terms · page 3 of 3

A–Z
All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Filtering by: Orders, Execution & Market Structure Clear all
Orders, Execution & Market Structure

Short Delivery

A failure to deliver securities to the clearing corporation by the settlement deadline after having sold them.

Test: the seller's demat balance is insufficient at pay-in, so the sold quantity is not delivered on the settlement date qualitative Orders, Execution & Market Structure

Slippage

The difference between the price expected when an order is sent and the price at which it actually executes.

Slippage = Actual Average Execution Price - Intended Price (sign adjusted for buy or sell) ₹ Orders, Execution & Market Structure

Square Off

Closing an open position by taking the opposite trade in the same quantity, leaving no net exposure.

Test: net position in the security becomes zero after the offsetting trade qualitative Orders, Execution & Market Structure

Stop-Limit Order

A stop order that, once triggered, enters the book as a limit order at a stated price rather than as a market order.

Test: the order carries both a trigger price and a limit price; the limit governs the worst acceptable fill qualitative Orders, Execution & Market Structure

Stop-Loss Order

A resting instruction that becomes an active order only once the price reaches a stated trigger level, used to cap a loss.

For a long position: trigger below the entry price; for a short position: trigger above it qualitative Orders, Execution & Market Structure

Tick Size

The smallest price increment by which a security's quote may change on an exchange.

Test: every valid order price must be an exact multiple of the tick size for that security ₹ Orders, Execution & Market Structure

Time-Weighted Average Price

The average price of a security over a period, giving equal weight to each time interval regardless of volume.

TWAP = Sum of Prices Sampled at Equal Intervals / Number of Samples ₹ Orders, Execution & Market Structure

Trade-for-Trade Segment

A settlement category in which every trade must be settled by delivery, with intraday squaring-off prohibited.

Test: buy and sell quantities in the security cannot be netted within the day; each trade settles individually by delivery qualitative Orders, Execution & Market Structure

Trailing Stop-Loss

A stop-loss whose trigger price follows a favourable move at a fixed distance and never moves back.

For a long position: Trigger = Highest Price Since Entry - Trail Amount qualitative Orders, Execution & Market Structure

Transaction Cost

The full cost of trading a security, comprising explicit charges and the implicit costs of spread and market impact.

Total Cost = Brokerage + STT + Exchange Fees + SEBI Fees + Stamp Duty + GST + Spread + Impact Cost % Orders, Execution & Market Structure

Upper Circuit

The state in which a security is trading at the top of its permitted price band, with buy orders pending and no sellers.

Upper Circuit Price = Previous Close x (1 + Band %) ₹ Orders, Execution & Market Structure

Volume-Weighted Average Price

The average traded price over a period, weighted by the volume executed at each price.

VWAP = Sum of (Price x Volume) / Sum of Volume ₹